Musings of a London Property Finder

The media coverage of the government nationalisation of the mortgage arm of the Bradford and Bingley has been surprisingly on the button, as far as we have heard today.

So why is this thought to be a relatively good deal for the government and ultimately the tax-payer? 

Firstly the government have sold off the retail arm of Bradford & Bingley for £612 million for c. £20 billion of deposits and the government has in effect become the mortgage lender for mortgagees.  Long-term this isn’t a bad strategy, as long-term, any properties repossessed should be able to be sold to cover any mortgage arears and some will make money.  This means that when the financial system stabilises, the government should be able to sell on this part of the business.

Unlike the US, in the UK we have limited supply and high demand.  The credit crunch has had an effect on house price less because of a lack of demand but because people can’t get mortgages at the rates to which we have become accustomed, particularly first-time buyers, at the bottom of the food-chain.  But I digress.

We read that 60% of Bradford & Bingley lending was to buy-to-let landlords.  Profit to the taxpayer will depend to an extent on the canniness of B& Bs mortgagees.  One would hope that buy-to-let landlords will have purchased with a tight grip on the purse-strings.  If not, at least there should be a good 15% margin of error in most cases, unlike the Northern Rock, renowned for the 125% mortgage. 

And the other benefit of lending to buy-to-let landlords?  At least there should be rent coming in every month!  Call this London Property Finder for help in buying the right house at the right price.

Technorati Tags: Building Societies, Buy-to-let, First time buyers, government bail-out, House Prices, house supply and demand, landlords, London Propeerty Finder, mortgages

Tags: Building Societies, Buy-to-let, First time buyers, government bail-out, House Prices, house supply and demand, landlords, London Propeerty Finder, mortgages

Musings of a London Property Search Agent

The National Housing Federation, the organisation which represents independent not-for-profit housing associations in England published a report yesterday predicting house price growth of 25% in England by 2013.

Federation Chief Executive David Orr said: “”Our report shows that despite concerns about the current housing market downturn, house prices will increase substantially over the mid to long term.”"

“”Demand for housing is going up, while the supply of new homes is going down. This means that as soon as the economic outlook improves house prices will resume their previous upward trajectory.”"

“”People are living longer, they’re delaying getting married and they’re more likely to get divorced €“ meaning we now have more households than ever.”"

He added: “”It’s clear that even with house prices falling, affordability hasn’t improved one iota. In recent months, we have seen mortgage arrears increase, the number of repossessions grow and new mortgages become more difficult to acquire.”"

We have been confident about the long-term prognosis for property in London and the South East throughout the credit crunch because of the lack of supply and increasing demand. According to the report, price increases in London will be 18% and a whopping 62% in the South East region as a whole! Great news if you live in the Home Counties!  If you want to move to a property in the South east this london Property Search Agent is waitng to help you.

Technorati Tags: House Price Increase, House Price Rises, house supply and demand, London Property Search Agent

Tags: House Price Increase, House Price Rises, house supply and demand, London Property Search Agent